Ascendas Reit buying UK logistics properties for $336m

Ascendas Reit, Singapore’s first and largest listed business space and industrial real estate investment trust, has announced the acquisition of another 26 logistics properties in the UK for £257.5 million ($336 million).

The acquisition will boost Ascendas Reit’s presence in the UK and follows its purchase of 12 such properties in July for $273.3 million, further expanding its footprint beyond Asia and Australia.

In a statement, Ascendas Reit said it will acquire the 26 logistics properties from Griffin Group UK Holdings Limited. Ascendas REIT (Europe) entered into a sale and purchase agreement with Griffin Group to acquire all the issued share capital of Griffin UK Logistics Fund and its nine wholly-owned subsidiaries, which owns the target properties.

The properties, which are 100 per cent occupied, are well-located in key logistics locations with about 70 per cent of the portfolio’s gross internal area situated within the West Midlands, an important logistics hub located at the centre of UK’s motorway network, Ascendas Reit said.

The logistics properties have a total gross internal area of 266,184 square meters and are situated on freehold land, with the exception of one property on 965-year leasehold land, in established industrial areas within the West Midlands, North West England, South East England, and Yorkshire and the Humber.

Executive Director and CEO of Ascendas Funds Management Limited, the manager of Ascendas Reit, William Tay said that overall, this acquisition fits strategically with their current UK portfolio. It will also broaden their customer base to include renowned companies such as Aston Martin Lagonda, Royal Mail Group and Sainsbury’s Supermarkets, and improve the resilience and sustainability of their income.

The acquisition, which is expected to be completed in the fourth quarter of 2018, will raise Ascendas Reit’s portfolio to a total of 98 properties in Singapore, 35 properties in Australia and 38 properties in the UK.

Ascendas Reit is Singapore’s first and largest listed business space and industrial real estate investment trust. As at 31 March 2018, total assets were about S$10.4 billion ($7.64 billion). The UK properties, including the proposed acquisition, will make up 8 per cent of Ascendas Reit’s total portfolio asset value, from just 4 per cent.